US BOPET Prices Remain Stable Despite Hurricane Disruptions

The US BOPET market has exhibited remarkable stability during August 2024 despite the logistical challenges posed by hurricanes. Although adverse weather conditions impact industrial activities and transportation, however, BOPET prices have remained stable at August 2024 levels due to the delicate balance between supply and demand dynamics, counterbalanced by various factors. The downstream packaging industry's shift towards sustainability has further impacted demand for BOPET. Suppliers have responded by adopting cautious inventory management strategies and maintaining a steady production rate.

During August 2024, there have been signs of improvement in the BOPET supply chain. The Polyester operating rates have risen to around 80%, indicating a more abundant supply compared to previous periods of tightness. Moreover, the cost of PET, a key feedstock for BOPET production, has remained relatively stable during this timeframe. This has helped to maintain overall production costs for manufacturers, preventing them from increasing their offers. On the other hand, the demand for BOPET from the downstream plastic sector has remained subdued. The comparative high freight charges have discouraged Asian and European buyers from purchasing during this period. Some buyers have resorted to importing material on breakbulk vessels and bypassing containers, suggesting higher inventory levels in the importing countries. Recyclers in the US were having trouble finding funding due to a combination of economic headwinds like high interest rates and inflation as well as weak demand due to a lack of purchasing interest and minimal trading activity.

The packaging industry's increasing emphasis on sustainability and eco-friendly practices has impacted the demand for BOPET film. The growing preference for recycled and plant-based materials has reduced the demand for petroleum-based plastics like BOPET. In response to the market conditions, several suppliers have opted for careful inventory management and a steady manufacturing rate. This approach helps to balance supply and demand while maintaining profitability. Henceforth, given the weak downstream buying appetite, buyers have been reluctant to replenish their inventories at current prices. This has led suppliers to adopt a rollover strategy, maintaining existing price levels to settle at USD 2110/MT BOPET Films 13 µ DDP Los Angeles, USA during August 2024.

As per ChemAnalyst, the BOPET prices in the USA are expected to decline in September due to a shift in downstream packaging demand toward sustainability. Moreover, as the winter season approaches, the new orders from the downstream plastic industry are expected to remain at a lower end which could decline the market of BOPET in the USA.